Because No One’s Telling You About It – That’s Why!
California “private retirement plans” have been around since 1970, even before tax qualified plans like 401ks and IRAs were created by ERISA in 1974. But very few California residents or advisors even know about them. Why?
Because there’s nothing to sell. There’s no tax deductions to promote and there’s no product to sell a client. A Private Retirement Plan simply allows a client to fund their own existing assets to fund their private retirement and protect it from creditors. Kind of like dropping a dome shield over your world. It’s that simple.
You should know about Private Retirement Plan – it’s your Right
All assets you build on your personal balance sheet are exposed to creditor attack and bankruptcy threat and if lost, will impact your lifestyle forever. But under California state statute, if funded to your Private Retirement Plan all assets are exempt from both lawsuit and bankruptcy creditor seizure and can be preserved until you use them.
So why aren’t Advisors educating clients on a PRP
A Major Controversy: many private investors argue the financial markets have created tax-driven retirement plans as a way to liquidate private assets and route cash flow away from a productive business in order to be reinvested into investment products, of which the main benefactors are the financial institutions and their commissioned advisors.
But Qualified Plans and IRAs just don’t work for a private investor/owner. How can I prove my point? Because as recent as this year more and more prohibitive transactions requirements have been imposed on Qualified & IRA plans that limit the investments and personal management of such plans, basically eliminating private asset funding.
A PRP is the “Do it Your Way” Retirement Plan
Conversely, a Private Retirement Plan is specifically designed to allow a Californian the opportunity to fund their private interest in their own plan and then exempt assets, gains and distributions from attacking creditors and bankruptcy. The state statute is so strong that Federal government recognizes the asset protection should inure to the benefit of the private retirement plan beneficiary…you!
It’s been this way unchanged since 1970, so you may want to get educated on it if you want your private assets and investments to be your retirement plan.